A misleading superannuation advertisement by SMC – a foreign company offering a range of financial products – has resulted in the company’s sole Australian agent agreeing to an enforceable undertaking.

The undertaking was made by Richard Sherland, who recently placed an advertisement in a Brisbane Sunday newspaper that implied consumers could access their superannuation benefits for use immediately, when this is not the case. Mr Sherland also established a similarly misleading website, ASIC said.

The advertisement said consumers could use their superannuation to travel, pay off debts, renovate a home or buy a business, boat or car, and that this would be “interest-free”.

SMC’s scheme is based on the premise that consumers can rollover their superannuation benefits into a self-managed fund and then invest the assets of the fund offshore through SMC. Mr Sherland has agreed to stop promoting unregistered managed investment schemes and will also cease selling or promoting any investment in an unregulated scheme.

Peter Kell, ASIC’s Consumer Protection Executive Director, said the matter serves as a good warning for consumers. “Arrangements that suggest consumers can use their superannuation funds before retirement are often illegal and very risky for consumers,” he said. “Superannuation can only be accessed early on severe financial hardship or compassionate grounds. Consumers can lose their superannuation savings if they invest in high-risk investments which are not regulated.”  

Mr Sherland has agreed to publish a notice in Brisbane’s Sunday Mail to alert consumers to the inaccuracies. He will also change misleading representations on his website.